Automotive Lighting Market: Global Share, Size, Growth, Trends & Outlook ( 2022 – 2032 )
Automotive Lighting Market Insights
The global automotive lighting market size was valued at around USD 35.5 billion in 2021 and is projected to grow at a compound annual rate of growth (CAGR) of around 7.2% from 2022 to 2032.The market size is projected to succeed in USD 66.3 billion by 2032.
The automotive lighting market refers to the industry involved in the production and sale of lighting systems utilized in vehicles, like headlights, taillights, interior lighting, and signal lights. The market is driven by the increasing demand for energy-efficient lighting solutions, technological advancements in automotive lighting, and rising concerns regarding road safety. The expansion of the market is attributed to factors like the increasing demand for energy-efficient lighting solutions, the growing demand for luxury vehicles, and the rising concerns regarding road safety. Additionally, the increasing adoption of advanced lighting technologies like LED and OLED is driving the expansion of the market. LED lighting is predicted to dominate the market thanks to its energy efficiency and longer lifespan compared to other lighting technologies.
The Asia-Pacific region is predicted to be the most important marketplace for automotive lighting thanks to the presence of major automotive manufacturers within the region and therefore the growing demand for vehicles. North America and Europe also are significant markets for automotive lighting thanks to the high adoption of advanced lighting technologies and therefore the increasing demand for luxury vehicles.
Some of the key players within the automotive lighting market include Osram Licht AG, Philips Lighting NV, Valeo S.A., Hyundai Mobis Co. Ltd., Hella KGaA Hueck & Co., Koito Manufacturing Co. Ltd., Stanley Electric Co. Ltd., and ZKW Group GmbH.
Automotive Lighting Market Key Drivers
The global automotive lighting market is driven by various factors contributing to its growth in recent years. Some of the key drivers of the are:
- Advancements in lighting technology: The event of the latest lighting technologies like LED and OLED, which supply improved performance and efficiency, is driving the adoption of those products within the automotive market.
- Growing demand for luxury vehicles: The increasing demand for luxury vehicles has led to an increase in the demand for high-quality and advanced lighting solutions. Luxury car manufacturers are increasingly adopting advanced lighting technologies like OLED and laser lighting to reinforce the general look and feel of their vehicles.
- The trend of auto customization: Consumers are increasingly demanding more personalized and customized vehicles, which has led to the event of a good range of lighting products and options.
- Increasing demand for energy-efficient lighting solutions: As the world moves towards sustainability, the demand for energy-efficient lighting solutions has increased significantly. The manufacturers specialize in developing lighting solutions that are more energy-efficient and environmentally friendly with LED lighting as a major example of energy-efficient lighting technology.
- Increasing production and sales of vehicles: The assembly and sales of vehicles are steadily increasing over the years, especially in emerging economies like China and India. This has led to a rise in the demand for automotive lighting solutions.
- Rising concerns regarding road safety: Road safety is a major concern for governments, regulators, and consumers alike. Automotive lighting plays a critical role in ensuring road safety by providing better visibility and improving the visibility of the vehicle to other road users. As a result, governments are increasingly mandating the utilization of advanced lighting solutions in vehicles.
- Stringent emission regulations: Governments around the world are implementing stricter emissions regulations, which is leading automakers to adopt more energy-efficient technologies like LED lighting to assist reduce fuel consumption and emissions.
Automotive Lighting Market Key Trends and Developments
The global automotive lighting market is undergoing several key trends and developments, including:
- Advanced lighting technologies: Manufacturers are increasingly developing advanced lighting technologies like OLED and laser lighting, which supply improved efficiency, performance, and style flexibility. These technologies are getting used in high-end luxury vehicles and are expected to become more widely adopted in the future.
- Autonomous driving: With the increasing adoption of autonomous driving technology, automotive lighting systems are expected to play an important role in communicating the intentions of the vehicle to other road users. Manufacturers are developing lighting solutions that will communicate the vehicle's status and direction to visitors pedestrians and other drivers.
- Design and aesthetics: Lighting is a key element of automotive design, and makers are increasingly specializing in developing lighting solutions that enhance the aesthetic appeal of vehicles. This includes using lighting to make unique visual effects, like light strips and patterns.
- Increasing adoption of OLED lighting technology: Organic LED (OLED) lighting technology is gaining popularity within the automotive lighting market thanks to its ability to supply uniform and efficient lighting with a skinny and versatile design. OLED lighting is predicted to be used more widely in vehicle interiors, taillights, and headlight systems in the future.
- Increasing use of laser lighting: Automakers are beginning to experiment with the utilization of laser lighting in vehicle headlights. Laser lighting is more energy-efficient and features a longer range than traditional LED lighting, but it's currently costlier to supply.
- Smart lighting systems: With the increasing use of sensors and connectivity in vehicles, automotive lighting systems are getting smarter and more adaptive. Smart lighting systems can adjust the lighting-supported driving conditions, weather, and surroundings, improving safety and luxury for drivers.
Automotive Lighting Market Segmentation
The Automotive Lighting market can be segmented based on the following factors:
- By Lighting Technology: Halogen Lighting, Xenon Lighting, LED Lighting, OLED Lighting, Laser Lighting
- By Application: Exterior Lighting (Headlights, Taillights, Fog Lights, Daytime Running Lights, Turn Signals), Interior Lighting (Dashboard Lights, Ambient Lighting)
- By Vehicle Type: Battery Electric Vehicles (BEVs), Hybrid Electric Vehicles (HEVs)
- By Vehicle Market: Passenger Cars, Commercial Vehicles, Off-Road Vehicles
- By End-user type: Original Equipment Manufacturers (OEMs), Aftermarket Players
- By Region: North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Automotive Lighting Market: Report Scope
Base Year Market Size
Forecast Year Market Size
Automotive Lighting Regional Synopsis
The North American marketplace for automotive lighting is driven by the increasing demand for advanced lighting solutions, safety regulations, and the growing adoption of electric vehicles. The market was valued at approximately $5.1 billion accounting for around 27% of the worldwide market share in 2020 and is predicted to grow at a CAGR of around 5.2% from 2021 to 2025. Europe is one of the most important markets for automotive lighting thanks to the presence of major automotive manufacturers and the increasing demand for advanced lighting solutions that provide better visibility and safety. The market was valued at approximately $6.9 billion accounting for around 36% of the worldwide market share in 2020 and is predicted to grow at a CAGR of around 6.3% from 2021 to 2025.
The Asia-Pacific region is predicted to ascertain significant growth within the automotive lighting market thanks to the increasing demand for passenger cars, the growing popularity of electric vehicles, and the presence of major automotive manufacturers in countries like China, Japan, and India. The market was valued at approximately $5.8 billion accounting for around 30% of the worldwide market share in 2020 and is predicted to grow at a CAGR of around 8.2% from 2021 to 2025.
Latin America is predicted to ascertain moderate growth within the automotive lighting market thanks to the increasing demand for advanced lighting solutions and the growing adoption of electric vehicles in countries like Brazil and Mexico. The market was valued at approximately $1.1 billion accounting for around 6% of the worldwide market share in 2020 and is predicted to grow at a CAGR of around 5.7% from 2021 to 2025. The Middle East and African region is predicted to ascertain moderate growth within the automotive lighting market thanks to the increasing demand for advanced lighting solutions, safety regulations, and the growing adoption of electric vehicles. The market was valued at approximately $0.8 billion accounting for around 4% of the worldwide market share in 2020 and is predicted to grow at a CAGR of around 6.8% from 2021 to 2025.
Japan Automotive Lighting Market
Japan is one of the leading automotive lighting markets in the world, driven by the presence of major automotive manufacturers and therefore the increasing demand for advanced lighting solutions that provide better visibility and safety. The Japanese automotive lighting market is characterized by high levels of innovation, with manufacturers developing advanced lighting technologies like LED and laser lighting. The market was valued at approximately $2.3 billion accounting for around 3.5% of the worldwide market share in 2020 and is predicted to grow at a CAGR of around 5.8% from 2021 to 2025. The market is predicted to ascertain moderate growth over the subsequent few years thanks to the increasing demand for passenger cars and electric vehicles, also because of the growing popularity of advanced lighting solutions. The Japanese government has also implemented regulations to market the utilization of energy-efficient lighting solutions, which is predicted to further drive the expansion of the automotive lighting market within the country.
Automotive Lighting Market Key Challenges
The automotive lighting market faces several key challenges that could potentially impact market growth and profitability. Some of the key challenges include:
- Complex supply chain: The automotive lighting market features a complex supply chain, with many various companies involved in the production and distribution of lighting systems and components causing challenges in coordinating and managing the varied stages of the method.
- The complexity of automotive lighting systems: Automotive lighting systems are getting increasingly complex with the mixing of the latest technologies and features. This will make it difficult for manufacturers to style and produce these systems, and also for mechanics to diagnose and repair them.
- High cost of advanced lighting technologies: Advanced lighting technologies like OLED and laser lighting are costlier than traditional lighting technologies like halogen and incandescent lighting. this will make it difficult for automotive lighting manufacturers to adopt these technologies on an outsized scale, especially in price-sensitive markets.
- Increasing competition within the market: The automotive lighting market is very competitive, with an outsized number of players operating within the market resulting in pricing pressure and lower profit margins for manufacturers.
- Intellectual property issues: The automotive lighting market is very competitive and corporations are constantly trying to find ways to differentiate their products. This has led to a high number of patent disputes and property issues.
- Limited availability of raw materials: Some advanced lighting technologies, like rare-earth element elements utilized in LED lighting, are in limited supply increasing the value of producing these lighting solutions and making supply chain challenges for manufacturers.
- Quality and reliability: Ensuring the standard and reliability of automotive lighting products is critical, as faulty or poorly-performing lighting systems can pose a security risk to vehicle occupants and other road users.
- Stringent regulatory requirements: Governments around the world are imposing increasingly stringent regulations regarding the utilization of automotive lighting. This will increase the value and complexity of automotive lighting systems, as manufacturers got to ensure compliance with these regulations.
Automotive Lighting Market Global Key Players
The global automotive lighting market is highly competitive, with several key players operating in the market. They use advanced equipment and software to provide high-quality services to their clients, which include automotive manufacturers, suppliers, and research organizations. These companies have a global presence and are constantly innovating to keep up with the rapidly evolving automotive lighting industry. Some of the major players in the market include:
- Koito Manufacturing Co. Ltd
- Stanley Electric Co. Ltd
- Valeo Group
- Magneti Marelli SpA
- HELLA KGaA Hueck & Co.
- Osram Licht AG
- Infineon Technologies AG
- LG Electronics
- Marelli Magnetti
- Hyundai Mobis
- Robert Bosch GmbH.